As Manic Market Moves Metastasize, Mind The Liquidity Drought
A recipe for “fun”.Â
A recipe for “fun”.Â
A simple read: Markets are becoming more fragile all the time.
The assumption of immunity may be misplaced.
We need to reflate with more “vigor”.
Even in a benign situation, a rotation could catch lopsided positioning woefully offsides.
The market zeitgeist is largely unchanged.
The second half of 2019 is likely to be “catalyst-rich”.
Of course, waxing hyperbolic/hysteric is something different from warning that something is possible.
A familiar refrain.
Imagine that, right?
It’s worth mentioning, but curb your enthusiasm.
“…a toxic cocktail of misguided protectionism and tacky jingoism wrapped in faux national security concerns.”
“…this is a possible continuation of the March episode.”
Spoiler alert: “Not yet”.
On the “bright” side…
It appears as though there’s always “someone” buying the proverbial dip – an invisible hand, as it were.
“This is useful to know”…
“Fear has been elevated to a new heuristic.”
“Plunge protection” – no conspiracy theories needed.
“All of this does this”…
“…if this is indeed the case, the reflexivity in markets ratchets up by multiple orders.”
Oh, and in case the “gray rhino”/”black swan” fans are wondering…
If it’s good news on the “reflation” narrative you seek, blockbuster credit growth and export data will do.
“Business history is full of unintended consequences of legislation.”
At this juncture, it’s probably just a matter of what “breaks” first in the “everything rally”.
“Is this really what everybody wants?”
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